Tuesday, June 1, 2010

Saying they want to promote a more efficient currency exchange, sixteen giant banks have formed a new organization out of the Association for Financial Markets in Europe, or AFME. Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) are among those that will be part of the new group, which will be called AFME FX.

AFME said this in a statement, "The AFME FX division will support efforts to promote an efficient global [foreign exchange] market, help develop market best practice, and monitor developments in public policy and regulation that could affect the [currencies] markets."

The 16 banks account for approximately 85 percent of worldwide currency flows in the foreign exchange market.

other major banks to be part of the AFME FX representative body are Deutsche Bank AG (DB), UBS AG (UBS), Barclays Capital (BARC.LN), the Royal Bank of Scotland (RBS), HSBC (HBC) and Credit Suisse (CS).